Posted by Bill H on February 06, 2006 at 21:11:04:
MY humble advice…Do everything completely LEGAL…H-ll hath no fury compared to the tax man if and when he finds out he has been cheated.
Good Luck,
Bill H
Quit claim deed - cash sale of property. Ethics? - Posted by House1VA
Posted by House1VA on February 06, 2006 at 13:35:58:
We have a house that was transferred to us via quit claim deed. We have a friend that wants to buy the house in a cash deal. No money is owed on the house, so there is no mortgage.
It has been suggested to me by someone to quit claim deed the house to this friend buying the house, and then accept the cash for the house seperately to avoid paying a gains tax on the house.
This seems unethical to me at best, and possibly illegal on avoiding taxes. Can someone point me to the law / IRS guidelines regarding this type of transaction or offer advice of a better way to handle the transaction?
Quit claim deed - cash sale of property. Ethics? - Posted by colvegas
Posted by colvegas on February 08, 2006 at 15:40:15:
Take bill h advice on this do it legally and ethically.
The IRS will find out about the contingent sale and the capital gains tax on that and you will owe those taxes, so check with the legal authority on this forum and or check with your attorny before attempting this since it sounds like blatant tax fraud.
All this title transferring you are doing via this quitclaim might be a red flag to the original sellers lender and you could be putting the loan in jeopardy due the lender calling it due and plus the legal chain of title from this post I bet there are problems there to.
If I can help you since I have some options feel free to email me at colvegas07@hotmail.com